Tinubu says Nigeria’s carbon market can generate $3b per year

By : 'Sola Akinsanmi

Date: 13 January 2026 4:52pm WAT

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President Bola Ahmed Tinubu

President Bola Ahmed Tinubu

President Bola Tinubu has said Nigeria is positioning its newly activated carbon market to generate between $2.5 billion and $3 billion annually over the next decade as part of efforts to mobilise climate finance and support the country’s energy transition.

Tinubu disclosed this on Tuesday while addressing world leaders and investors at the 2026 Abu Dhabi Sustainability Week, themed “The Nexus of Next: All Systems Go.” He said the government had taken regulatory steps to strengthen climate governance and attract investment into low-carbon projects.

“Nigeria feels at the heart of development opportunity,” the President said. “In this spirit, Nigeria has launched a climate and green industrialisation investment to unlock $20bn to $30bn annually in climate finance.”

He explained that the carbon market push is anchored on the National Carbon Market Activation Policy and the launch of the National Carbon Registry, which are intended to improve emissions reporting, verification and transparency. According to him, these measures are designed to make Nigeria’s carbon credits credible and attractive to global buyers.

Tinubu said Nigeria approved the National Carbon Market Framework in October 2025, setting out rules for carbon credit registration, issuance and verification. He added that the Climate Change Fund was operationalised in November, alongside the restoration of the National Council on Climate Change to the federal budget.

The President said the carbon market would incentivise emissions-reduction projects in areas such as forestry, renewable energy, clean cooking and agriculture, while creating new revenue streams for communities and businesses.

On energy reform, Tinubu referenced the 2023 Electricity Act, which allows decentralised electricity generation and distribution. He said this had opened the way for inclusive energy access to rural communities, off-grid health facilities, schools, markets and other underserved areas.

“Nigeria recognises the urgent need to deploy and advance technologies to improve green efficiency, modernise infrastructure, and accelerate the delivery of sustainable energy to underserved areas,” he said.

Tinubu also outlined several financing initiatives linked to Nigeria’s climate agenda. These include a climate investment platform targeting $500m for climate-resilient infrastructure, a national climate platform aimed at mobilising $2bn in capital investment, and a $50bn sub-regional green bond, which he said was oversubscribed by 97.7 per cent.

He noted the role of multilateral partners, saying the World Bank is implementing a $750m programme to expand clean electricity access to more than 17.5 million Nigerians. According to the President, Nigeria’s energy transition plan integrates “climate mitigation, industrial growth, and social development into a single coherent framework,” with the goal of achieving net-zero emissions by 2060 while ensuring universal access to energy.

Tinubu called on developed countries to deepen partnerships with Nigeria through technology transfer, knowledge exchange and innovation, noting that “the adoption of artificial intelligence to optimise efficiency is no longer a matter of the future.”

Nigeria submitted updated climate commitments to the United Nations in September 2025, reinforcing its intention to use market-based mechanisms, including carbon trading, to meet emissions targets while supporting economic growth.

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